Confidence in the US economy spikes after Trump win

Donald
Trump supporters embrace at an election night rally in New
York.Reuters/Mike
Segar

Consumers' confidence in the economy spiked after Donald Trump
won the presidential election, according to the University of
Michigan.

The final index of consumer sentiment for November jumped to 93.8
from a preliminary reading of 91.6, according to a report
released on Wednesday.

This report took on added significance because it showed results
of the first postelection survey.

"The initial reaction of consumers to Trump's victory was to
express greater optimism about their personal finances as well as
improved prospects for the national economy," said Richard
Curtin, the survey's chief economist.

Curtin said the survey showed that the improved optimism was
widespread — across all income and age subgroups across the
country. However, it may have been exaggerated by a sense of
relief that the election was finally over, he said.

A
Gallup poll released last week also showed a spike in
consumer confidence, although it was divided along political
lines. Republicans became more bullish about the economy, while
Democrats turned more bearish, according to the tracking poll.

"Presidential honeymoons represent a period in which the promise
of gains holds sway over actual economic conditions," Curtin
said. "Presidential honeymoons, however, can quickly end if they
are unaccompanied by prospects that economic conditions will
actually improve in the future."